Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

June 14, 2022
IssuerIchigo Office REIT Investment Corporation (“Ichigo Office,” 8975)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Yoshihiro Takatsuka, Executive Director
www.ichigo-office.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Norio Nagamine, Head of Ichigo OfficeTel: +81-3-3502-4891

Acquisition of Office Asset (Ichigo Higashi Ikebukuro 3 Chome Building)
Ichigo Office decided today to acquire an office asset, the Ichigo Higashi Ikebukuro 3
Chome Building.
1. Asset Acquisition Summary
Asset Number
Asset Name1

O-97
Ichigo Higashi Ikebukuro 3 Chome Building

Asset TypeOffice

Date Built

March 31, 1988

Legal Form of Asset Trust beneficiary interest in real estate (juekiken)
Appraisal Value2

JPY 3,930 million

Acquisition Price3

JPY 3,840 million

Seller4

Domestic TMK (tokutei mokuteki kaisha)Contract Date

June 14, 2022

Closing Date

June 20, 2022 (expected)

Financing Method5

Cash-on-hand, Loans (expected)

Settlement Method

Lump-sum payment

1Ichigo Office will change the building name from the Seiwa Ikebukuro Building to theIchigo Higashi Ikebukuro 3 Chome Building. For purposes of this release, the building
is referred to as the Ichigo Higashi Ikebukuro 3 Chome Building.
2Appraisal Value is calculated by Tanizawa Sogo Appraisal as of April 1, 2022, and isin compliance with the appraisal guidelines of Ichigo Investment Advisors (“IIA”) as
well as the rules of the Investment Trusts Association of Japan.
3Acquisition Price excludes incidental expenses such as fees and property, cityplanning, and consumption taxes.
4The seller, a domestic company (TMK), did not provide consent to disclose its name.
1

5This asset acquisition will be financed by cash-on-hand and JPY 1,900 million of newloans, as announced in today’s release “New Loans.”

2. Acquisition Rationale
As a specialized office REIT with stable earnings and a diversified portfolio, Ichigo
Office continues to execute on its strategy to grow shareholder value by focusing its
portfolio on high-quality, mid-size office assets.
Ichigo Office is acquiring the Ichigo Higashi Ikebukuro 3 Chome Building, a mid-size
office building in Central Tokyo with growth potential, to increase the quality of its
portfolio, using proceeds from the asset sale announced in the February 17, 2022 release“Sale of Portfolio Asset (Ichigo Akasaka 5 Chome Building).”
The Ichigo Higashi Ikebukuro 3 Chome Building is located in the east side of Ikebukuro
Station, an area that is expected to see a further increase in convenience on the back ofnew redevelopment projects following the completed redevelopment of the former
Toshima Ward Office site. In addition to conducting value-add capex on the building,Ichigo Office can draw upon its operational know-how from owning four other assets in
the Ikebukuro area to drive stable earnings from the building.
The existing tenants of the Ichigo Higashi Ikebukuro 3 Chome Building meet thetenant standard stated in the “Financial Report (Yuka Shoken Hokokusho)” (Japaneseonly) disclosed on January 27, 2022.
Please refer to Section 3 “Details of the Ichigo Higashi Ikebukuro 3 Chome Building”
immediately below for additional details on the asset’s features and characteristics that
underpinned the acquisition decision.
3. Details of the Ichigo Higashi Ikebukuro 3 Chome Building(1) Location
The Ichigo Higashi Ikebukuro 3 Chome Building is located near Ikebukuro Station, oneof Tokyo’s three major train stations, alongside Shibuya and Shinjuku stations, thatoffers convenient access to central Tokyo and the surrounding suburbs via the JR Lines,
the Tokyo Metro, and several private railway lines and enjoys a large number ofpassengers.
The Higashi Ikebukuro area benefits from stable tenant demand spanning multiple
industries owing to a large number of office buildings along trunk roads such as Meiji
Dori road as well as many retail stores and restaurants along the Sunshine 60 Dori road.
(2) Features
The Ichigo Higashi Ikebukuro 3 Chome Building is a mid-size office building locatedwithin an 8-minute walk from the JR Ikebukuro Station and a 9-minute walk from theHigashi Ikebukuro Station on the Tokyo Metro Yurakucho Line.
Each floor has a standard floor plate of 145 tsubo (480m2) with a ceiling height of 2.8
meters, and is equipped with zoned air conditioning systems and raised-access floors,catering to the demands of diverse tenants.
Current tenants include those from the IT and electronic parts manufacturing industries.

2(3) Building Location and Photos

3Asset Name
Legal Form of Asset
Trustee
Period of Trust Contract
Location
Property RightAreaLandZoningCoverage Ratio
Floor Area Ratio
Property RightUse
Building Structure
Total Floor Area
Date Built
Appraiser
Appraisal Value

Asset OverviewIchigo Higashi Ikebukuro 3 Chome Building
Trust beneficiary interest in real estate (juekiken)
Mitsubishi UFJ Trust and Banking Corporation
June 29, 2018 – June 30, 2032 (expected)
3-13-3 Higashi Ikebukuro, Toshima-ku, Tokyo
Freehold
856.89m2
Commercial
80%700%
Freehold
Office, Machine Room
Steel Reinforced Concrete, 6 Floors, 1 Basement Floor
4,050.27m2
March 31, 1988
Tanizawa Sogo Appraisal Co., Ltd.
JPY 3,930 million
April 1, 2022

Appraisal Date
Value by Direct Capitalization
JPY 4,030 million
MethodKato Yoshihiro Architects & Engineers Co., Ltd.
Architect11Builder
Taisei Corporation
1
Structural Designer
Kato Yoshihiro Architects & Engineers Co., Ltd.
1
Inspection Agency
Toshima Ward
PML (Assessor)
8.0% (Sompo Risk Management Inc.)
Collateral
None
Lease Details (as of April 30, 2022)
Tenant Overview
6
Number of Tenants
Monthly Rental Income
JPY 14.350 million
Tenant Security Deposits
Leasable Area
Leased Area
Occupancy
Property Management
Company
Master Lease Company
Master Lease TypeJPY 131.974 million
2,764.59m2
2,764.59m2
Apr 2020 Oct 2020
100%
100%

Apr 2021
100%Oct 2021
100%Apr 2022
100%Shimizu Comprehensive Development Corporation (expected)
Ichigo Office REIT Investment Corporation (expected)
Pass-through (expected)

4

Special Items
1. A memorandum of understanding is in place with the neighbor on the eastern border of thebuilding (lot numbers 66-2, 66-3, 66-4, 66-5, 66-8, 66-15, 66-17, and 66-19) with respect torectifying the following encroachments during any future renovation work:a. Co-owned doors on the north and south sides encroach into each party’s lot.
b. The service drop line to the building encroaches into the aerial space of the northeasternneighbor’s property (lot number 66-15).
2. Part of the asset’s floor lights and brick flooring encroach into the property of thenorthwestern neighbor (lot number 66-16). No memorandum of understanding exists withrespect to this encroachment.
3. Part of the building’s plantation encroaches into the property of the southwestern neighbor(lot number 66-14). No memorandum of understanding exists with respect to thisencroachment.
1

Names of the architect, builder, structural designer, and inspection agency are those as of
the building’s construction date.

5Asset Name
Appraisal ValueAppraiser
Appraisal Date

Appraisal Value
Value by Direct
Capitalization Method
IncomeForecast FullOccupancy Rental
IncomeForecast Decrease
in Rental Income
due to Vacancy
Expenses
Administrative &MaintenanceExpensesUtility Expenses
Repair Expenses
PM FeeLeasing
Brokerage Fees
Taxes
Insurance
Premiums
Other Expenses
Net Operating
Income (NOI)
Income from
Investments ofDeposits
CapitalExpenditure
Net Profit

Appraisal Details
Ichigo Higashi Ikebukuro 3 Chome Building
JPY 3,930,000,000
Tanizawa Sogo Appraisal Co., Ltd.
April 1, 2022
AmountNote
Calculated using an income approach,with a DCF valuation as a basis and
JPY 3,930,000,000
verified using a direct capitalization
valuation
JPY 4,030,000,000
JPY 204,189,183
Based on expected long-term, stablerental income, common area service
JPY 216,111,225
income, parking lot income, and otherincome
JPY 11,922,042

Based on long-term, normalized
vacancy rates

JPY 41,149,256
JPY 8,210,102 Based on actual amounts
JPY 10,686,703 Based on actual amounts
JPY 5,040,000 Based on engineering reports
Based on contractual rates andJPY 2,782,156
reference to rates at similar assets
Based on tenant acquisition costs at
JPY 1,792,257
similar assets
JPY 11,675,400 Based on FY2021 actual amounts
JPY 554,260 Based on insurance estimates
JPY 408,378 Based on actual amounts
JPY 163,039,927
JPY 922,087 Based on a 1.0% investment yield
JPY 10,800,000 Based on engineering reports
JPY 153,162,014
Based on transactions of similar assets,taking into consideration the asset’s
3.8% location and specific characteristics,
rights, and terms and conditions of thecontract

Cap Rate6

Value via DCF Method

JPY 3,880,000,000
Based on transactions of similar assets
and the current yield of financial
3.9% assets, taking into consideration theasset’s location and specificcharacteristics
4.0% Cap rate adjusted for uncertainties

Discount Rate
Terminal Cap Rate
Accounting Value
LandBuilding

JPY 3,760,000,000
85.9%
14.1%
Notes

None
Note: Appraisal NOI Yield: 4.2% (calculated by dividing NOI by Acquisition Price)
4. Seller Profile
Name

The seller, a domestic TMK, did not provide consent
to disclose its name.

Relationship toIchigo Office orIchigo Investment
Advisors (IIA)

The seller does not have any material capital,personnel, or transactional relationship with Ichigo
Office or IIA. In addition, the seller is not a related
party as defined in the Act on Trusts and Investment
Corporations or the internal rules of IIA.

5. Broker Profile
Name
Address
Representative

Principal BusinessCapital
Establishment Date

Japan Asset Advisors Co., Ltd.
3-3-4 Kanda Kajicho, Chiyoda-ku, Tokyo
Kazuhiro Minami, President & Representative
Director
1. Real estate transactions, leasing, management,
brokerage, intermediation, and appraisal; as well as theconsulting thereof
2. Research and investment of real estate, securitized
real estate, bonds, securities, and financial assets
3. Other businesses relating to the aforementionedbusinesses
JPY 80 million
November 15, 2005

Relationship toIchigo Office orIchigo Investment
Advisors (IIA)

The broker does not have any material capital,personnel, or transactional relationships with Ichigo
Office or IIA. In addition, the broker is not a related
party as defined in the Act on Trusts and Investment
Corporations or the internal rules of IIA.

Brokerage Fee

The broker did not provide consent to disclose
the fee.

76. Acquisition Schedule
June 14, 2022
June 14, 2022
June 20, 2022 (expected)

Acquisition Decision Date
Contract Date
Closing Date
7. Earnings Impact

The impact of this asset acquisition on Ichigo Office’s October 2022 and April 2023
fiscal period earnings is described in today’s release “April 2022 Fiscal PeriodEarnings.”.

8

Reference
1. Earnings Profile of Asset Being Acquired(JPY million)
Forecast1

At Acquisition2

A. Rental Income
B. Rental Expenses(excluding depreciation)3
C. NOI (A-B)

200

194

4339156

155

D. NOI Yield4

4.1%

4.1%E. Depreciation5

1617

F. Post-depreciation NOI (C-E)

140137

G. Post-depreciation NOI Yield4

3.7%

3.6%

H. Occupancy696%

100%

1Amounts exclude one-off factors in the year of acquisition and are calculated based on
current and future anticipated fluctuations in occupancy.
2
Shows first-year amounts used to calculate the DCF-based valuation, excluding one-off
factors in the year of acquisition.
3
Rental Expenses include incidental expenses such as service provider fees, taxes,
maintenance and repair fees, insurance premiums, and other fees.
4
Calculated based on Acquisition Price.
5
Depreciation is as estimated by Ichigo Office using the straight-line method.
6
Occupancy at acquisition is as of April 30, 2022.
2. Engineering Report Summary
Asset Name
Inspector Name
Inspection Date
Short-Term Repair Expenses1
Long-Term Repair Expenses2
Current Replacement CostIchigo Higashi Ikebukuro 3 Chome Building
Tokio Marine dR Co., Ltd.
April 2022
–JPY 185.72 million
JPY 1,444.7 million

1

Short-Term Repair Expenses are defined as repair expenses beyond the scope ofordinary maintenance within a year from the time of inspection.
2Long-Term Repair Expenses are defined as cumulative repair expenses considerednecessary for the maintenance of the asset within twelve years from the time ofinspection.

9Appendix C: Post-Transaction Portfolio
No.
O-02
O-03
O-04
O-05
O-06
O-07
O-09
O-10
O-11
O-12
O-14
O-15
O-16
O-17
O-18
O-19
O-20
O-21
O-22
O-23
O-24
O-26

Area1

Asset Name

O-27
O-28
O-29

Ichigo Nishisando Building
Ichigo Mita Building
Ichigo Nanpeidai Building
Ichigo Hanzomon Building
Ichigo Hijirizaka Building
Ichigo Shibuya Kamiyamacho Building
Ichigo Shibakoen Building
Ichigo Ebisu Nishi Building
Ichigo Ginza 612 Building
Ichigo Uchikanda Building
Ichigo Yotsuya 4 Chome Building
Ichigo Tameike Building
Ichigo Jimbocho Building
Ichigo Hakozaki Building
Ichigo Kudan 2 Chome Building
Ichigo Kudan 3 Chome Building
Ichigo Gotanda Building
Ichigo Shin Yokohama Building
Ichigo Minami Ikebukuro Building
Ichigo Nakano North Building
Ichigo Eitai Building
Ichigo Ikejiri Building
Ichigo Nishi Ikebukuro Building
Ichigo Nishi Gotanda Building
Ichigo Kichijoji Building

O-34

Ichigo Sakae Building

O-37

Ichigo Marunouchi Building

O-38
O-39
O-42
O-46
O-47

Ichigo Toyamaeki Nishi Building
Ichigo Mirai Shinkin Building
Ichigo Takamatsu Building
Ichigo Kanda Nishikicho Building
Ichigo Akihabara North Building

O-48

Ichigo Sakaisuji Honmachi Building

O-49
O-50

Ichigo Kanda Ogawamachi Building
Ichigo Hatchobori Building

Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central TokyoTokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major RegionalCities
Four Major RegionalCities
Other Regional Cities
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Four Major RegionalCities
Central Tokyo
Central Tokyo
10Acquisition
Price(JPY million)% ofPortfolio2

3,254
2,740
1,920
1,550
1,200
1,505
1,100
1,917
1,773
1,140
550
580
1,820
1,150
763
844
5,060
1,816
1,460
764
1,490
2,030
639
765
2,160

1.6
1.3
0.9
0.7
0.6
0.7
0.5
0.9
0.80.5
0.3
0.3
0.9
0.5
0.4
0.4
2.4
0.9
0.7
0.4
0.7
1.0
0.3
0.4
1.0

4,705

2.2

6,710

3.2

1,645
1,158
3,010
2,130
5,500

0.8
0.6
1.4
1.0
2.6

1,940

0.9

2,210
1,905

1.1
0.9

No.
O-51
O-52
O-53
O-54
O-55
O-56
O-57
O-58
O-59
O-60
O-61
O-62
O-63
O-64
O-65
O-66
O-67
O-68
O-69
O-70
O-71
O-72
O-73

Ichigo Ebisu Green Glass
Ichigo Omori Building
Ichigo Takadanobaba Building
Ichigo Omiya Building
Ichigo Sagamihara BuildingIchigo Ofuna Building
Ichigo Sendai East Building
Ichigo Kumamoto Building
Ichigo Jingumae Building
Ichigo Shibuya Dogenzaka Building
Ichigo Hiroo Building
Ichigo Sasazuka Building
Ichigo Nihonbashi East Building
Ichigo Sakurabashi Building
Ichigo Shinkawa Building
Ichigo Kudan Building
Ichigo Higashi Gotanda Building
Axior Mita
Ichigo Higashi Ikebukuro Building
Koriyama Big-i (Office Section)
Ichigo Kawasaki Building
Ichigo Shibuya East Building
Ichigo Ningyocho Building

O-74 Ichigo Nishi Honmachi Building
O-75 Ichigo Hakata Building
O-76 Ichigo Nishiki First Building
O-77
O-78
O-79
O-80

Area1

Asset NameIchigo Ikenohata Building
Ichigo Ikebukuro East Building
Ichigo Motoazabu Building
Ichigo Otsuka Building

O-81 Ichigo Nagoya Building
O-82 Ichigo Fushimi Building
O-83 Ichigo Nishiki Building
O-84 Ichigo Minami Morimachi Building
O-85 Ichigo Shibuya Udagawacho Building

Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro Area
Tokyo Metro Area
Tokyo Metro Area
Other Regional Cities
Other Regional Cities
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Central Tokyo
Tokyo Metro AreaOther Regional Cities
Tokyo Metro Area
Central Tokyo
Central Tokyo
Four Major Regional
CitiesFour Major Regional
CitiesFour Major RegionalCities
Tokyo Metro Area
Tokyo Metro Area
Central Tokyo
Tokyo Metro Area
Four Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesFour Major Regional
CitiesCentral Tokyo
11

Acquisition
Price(JPY million)
5,900
3,850

% of
Portfolio2

1,580
3,430
1,174
2,000
1,840
1,450
7,200
3,650
3,960
4,780
4,700
2,500
2,360
3,190
3,660
1,800
4,570
1,660
1,750
1,350
1,450

2.8
1.8
0.8
1.6
0.6
1.00.90.7
3.4
1.7
1.9
2.3
2.2
1.2
1.1
1.5
1.7
0.9
2.2
0.8
0.8
0.6
0.7

2,190

1.0

1,380

0.7

2,000

1.0

5,130
3,010
1,890
2,740

2.5
1.4
0.9
1.3

3,420

1.6

2,340

1.1

1,330

0.6

1,040

0.5

3,500

1.7

No.
O-86
O-87
O-88
O-89
O-90

Acquisition
Price(JPY million)% ofPortfolio2

Central Tokyo
Tokyo Metro Area
Central Tokyo
Central Tokyo
Central Tokyo
Four Major Regional
CitiesTokyo Metro Area
Central Tokyo
Four Major RegionalCities
Tokyo Metro Area
Tokyo Metro Area

3,100
2,300
1,680
3,3002,200

1.5
1.1
0.8
1.6
1.1

1,900

0.9

2,780
3,315

1.3
1.6

2,250

1.1

1,495
3,830

0.7
1.8

Tokyo Metro Area

3,840

1.8

Subtotal - Office (82 Assets)
Future IZUMIOther Regional Cities
Ichigo Shibuya Bunkamura Dori Building
Central Tokyo
Twicere Yokohama Isogo (Retail Section)
Tokyo Metro Area
Ichigo Kamata Building
Tokyo Metro Area
Subtotal - Other (4 Assets)
Total (86 Assets)

202,667
1,210
2,400
1,620
1,400
6,630
209,297

96.8
0.6
1.1
0.8
0.7
3.2
100.050–Win Gotanda Building
Ichigo Hongo Building
Oimachi Center Building
Win Gotanda Building 2
MIF Building

O-91 Ichigo Uchi Honmachi Building
O-92 Ichigo Minami Otsuka Building
O-93 Ichigo Nogizaka Building
O-94 Ichigo Hakata East Building
O-95 Ichigo Nakameguro Building
O-96 Ichigo Tachikawa Building
Ichigo Higashi Ikebukuro 3 Chome
O-97
Building
Z-09
Z-10
Z-11
Z-14

Area1

Asset NameTK Equity Investment GK Kizuna1 TK Equity Interest
1

Central Tokyo refers to Chiyoda, Minato, Chuo, Shinjuku, Shibuya, and Shinagawa Wards. Tokyo MetroArea refers to Tokyo (excluding the six wards above), Kanagawa, Chiba, and Saitama Prefectures. Four
Major Regional Cities refers to Osaka, Nagoya, Fukuoka, and Sapporo.
2% of Portfolio is based upon acquisition price.

12